Bulletin ID
DLB - 98 - 5
| PublicationDate: 2/1/98 BulletinID: DLB - 98 - 5 February 1998 Subject: New Reports for Closing Out 1995-96 and 1996-97 Academic Years Dear Colleague: The deadline for the processing of Direct Loan records for the 1995-96 and 1996-97 academic years is July 31, 1998. After July 31, 1998, the Direct Loan Origination Center (LOC) will no longer accept any loan origination records, promissory notes, or disbursement transactions (actual disbursements, adjustments and cancellations) for the 1995-96 and 1996-97 academic years. IF THE LOC HAS NOT RECEIVED COMPLETE AND ACCURATE RECORDS FOR ANY 1995-96 OR 1996-97 LOAN MADE BY A SCHOOL BY JULY 31, 1998, THE SCHOOL MAY HAVE AN INSTITUTIONAL LIABILITY FOR ANY UNBOOKED OR ERRONEOUSLY BOOKED LOAN. In order to assist schools in determining that the LOC has received all disbursement transactions that are in the school's internal records the Department will soon be sending each school two electronic files that can be used to create reports known as the 732A and 732B. These two files will help schools determine whether there are disbursement transactions that are missing from the LOC. This may be the result of either the school not sending the transactions to the LOC, or the LOC not receiving the transactions. The 732 files also include a list of all drawdowns and excess cash transactions on the LOC's system. THE DEPARTMENT STRONGLY RECOMMENDS THAT SCHOOLS USE THE INFORMATION IN THESE ELECTRONIC FILES TO ASSIST SCHOOLS IN CLOSING OUT THE 1995-96 AND 1996-97 ACADEMIC YEARS. The 732A represents receipts of cash, excess cash, and disbursement transactions on the Direct Loan origination system from the date the school began participating in the Direct Loan Program through February 28, 1997, the date of conversion to the current loan origination contractor. The 732A provides the school with transaction level detail for disbursement transactions, drawdowns, and excess cash transactions in date and loan ID order. In addition, the 732A provides the school's ending cash balance as of February 28, 1997. The 732A also provides total summary balances and record counts for drawdowns, excess cash, disbursements, adjustments and cancellations. The 732B represents receipts of cash, excess cash, and disbursement transactions on the Direct Loan origination system from March 1, 1997, the date the current loan origination contractor began processing. The 732B will include all transactions from March 1, 1997, to the date the report is created by the LOC. In addition to providing the same data as the 732A (transaction date and net amount), the 732B will provide the school's ending cash balances as of the report processing date. Both the 732A and 732B will be created ONE TIME by the LOC and sent to all schools as an electronic file. The message classes for these files are as follows: DIS298OP- 732A: DOCUMENTATION TO SUPPORT LOS ENDING BALANCE AS OF 2/28/1997 DIS398OP- 732B: DOCUMENTATION TO SUPPORT POST CONVERSION ENDING BALANCE Schools needing assistance with the importing of these message classes and the printing of these reports should contact CPS DIRECT LOAN CUSTOMER SERVICE AT 800/330-5947, OPTION 3. As schools are reviewing the information in the 732 files, they may discover differences between what is in the 732 files and what is in their internal records. An indication that there are corrections needed would be an ending cash balance other than zero on the 732 reports (disbursements do not equal drawdowns and returns of excess cash). If the ending cash balance on the 732 reports differs from what the school's internal records reflect, the school should determine whether it has sent the necessary information, such as disbursement records, to the LOC. If the school determines that the information has been sent but the LOC has either not received the data or the 732 reflects incorrect data for disbursement transactions, the school should contact its LOC Customer Service Representative. Likewise, the school should notify the LOC of any incorrect or missing data pertaining to cash receipt and excess cash transactions recorded on the 732 reports. The CSR will provide guidance to the school as to what information will be needed by the LOC in order to correct the 732 data. At a later date, the school will be able to request a new electronic file from the LOC, which can be used to create the 732C report. The new 732C will reflect all corrections to the 732A and 732B that have been sent to the LOC by the school and corrections to transactions that have been identified by the school to the LOC. Schools will be able to request a 732C as needed, in order to verify that the corrections identified and sent to the LOC have been made. Each 732C will also provide the school with an updated ending cash balance. ADDITIONAL GUIDANCE CONCERNING THE AVAILABILITY AND USE OF THE NEW 732C WILL BE PROVIDED IN A LATER DIRECT LOAN BULLETIN. By analyzing the data in the 732 files, identifying corrections, and resolving all reported discrepancies to the LOC, a school's ending cash balance should be zero. If after July 31, 1998, a school has an ending cash balance other than zero, that cash balance may become an institutional liability. AGAIN, THE DEPARTMENT STRONGLY RECOMMENDS THAT SCHOOLS REVIEW AND ANALYZE THE DATA IN THESE ELECTRONIC FILES IN ORDER TO ENSURE THAT ALL 1995-96 AND 1996-97 LOAN RECORDS HAVE BEEN SUBMITTED BY JULY 31, 1998, AND TO ENSURE AN ENDING CASH BALANCE OF ZERO. If you have questions about the 732 data and/or need assistance in making corrections to the 732 data, please contact your LOC CUSTOMER SERVICE REPRESENTATIVE AT 800/848-0978. Thank you for your ongoing support of the Direct Loan Program. Sincerely, Joe L. McCormick Chair Direct Loan Task Force |